Gold Price Holds Steady Amid ECB's 25 Basis Point Rate Hike

The European Central Bank (ECB) has raised its three key interest rates by 25 basis points, but the gold market seems largely unaffected. The deposit facility, main refinancing operations, and marginal lending facility interest rates will now be at 2.50%, 2.65%, and 2.90% respectively.

The ECB cited inflation pressures above its 2% target as the reason for the rate hike. The conflict in the Middle East continues to drive up prices, and it's expected that inflation will remain high for an extended period. According to the ECB, this decision underscores its commitment to stabilizing inflation at 2% in the medium term.

The gold market is not seeing significant selling pressure following the rate hike. Spot gold has fallen by 0.62% on the day, trading at €3,760.33 an ounce, and by 0.77% trading at $4,367 an ounce.